Case law

  • Case Details
    • National ID: 3-2-1-108-14
    • Member State: Estonia
    • Common Name:link
    • Decision type: Supreme court decision
    • Decision date: 12/11/2014
    • Court: Supreme Court
    • Subject:
    • Plaintiff: Era Liisingu Inkassoteenused Aktsiaselts
    • Defendant: Mati Makkar
    • Keywords: unfair terms
  • Directive Articles
    Unfair Contract Terms Directive, Article 2, (a) Unfair Contract Terms Directive, Article 3, 1. Unfair Contract Terms Directive, Article 4, 1. Unfair Contract Terms Directive, Article 4, 2.
  • Headnote
    The validity of a standard term, i.e. whether the term is unreasonably harmful (unfair), prescribing the amount of interest to be paid cannot be assessed in the context of it being a standard term because it relates to the main subject matter of the contract as well as to the relationship between the price and the value of the services or goods supplied in exchange.
  • Facts
    The plaintiff and the defendant (as a consumer) were parties to a loan contract. The defendant signed the loan contract online under the plaintiff’s standard terms. The defendant was given a loan in the amount of 191 euros and 73 cents with an interest of 172 euros and 56 cents, i.e. 265,43% annually and 0,73% daily.

    The defendant did not fulfill his obligations in conformity with the contract.

    The plaintiff filed an action against the defendant requiring performance of monetary obligations arising from the loan contract. The defendant argued against the validity of the standard term prescribing the amount of interest to be paid.
  • Legal issue
    According to law, a standard term is not deemed to be unfair if it relates to the main subject matter of the contract or to the relationship between the price and the value of the services or goods supplied in exchange. A standard term prescribing the amount of interest to be paid relates to the main subject matter of the contract as well as to the relationship between the price and the value of the services or goods supplied in exchange. Therefore, the validity of the standard term in question cannot be assessed in the context of it being a standard term. The validity of the standard term in question can, however, still be assessed in the context of some other legal norm specifying the grounds for the invalidity of agreements.
  • Decision

    Can the validity of a standard term, i.e. whether the term is unreasonably harmful (unfair), prescribing the amount of interest to be paid be assessed in the context of norms regulating the validity of standard terms?

    URL: N/A

    Full text: Full text

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  • Result
    The court referred the matter back to the court of second instance for a new hearing.